ABA Family Legal Guide

Law and the Workplace

Introduction to Law and the Workplace

What is the legal significance of a union contract?

When employees select a union as their bargaining representative, the union negotiates a collective bargaining agreement (contract) with the employer. This contract contains the terms and conditions of employment for the employees in the bargaining unit. The terms of the contract are legally binding on both the employer and the employees, providing a source of enforceable employment rights. Individual employees cannot usually negotiate separate deals with the employer, but collective bargaining agreements in fields such as professional sports and the entertainment industry often permit union members to negotiate separately.

If there is no union contract, the employee deals directly with the employer and negotiates his or her own terms of employment. Generally, that employee does not have the protections of a written contract.